Medtronic Keeps Growing

Medtronic Inc. (MDT - Analyst Report) recently announced that its wholly-owned subsidiary, Physio-Control Inc., has received 510 (k) approval from FDA (Food and Drug Administration) for its next-generation LUCAS Chest Compression System, LUCAS 2.

The device was manufactured by Jolife AB, a company specializing in developing and manufacturing the LUCAS Chest Compression System, and distributed exclusively in the U.S. by Physio-Control under an agreement with Jolife. LUCAS 2 also received the CE Mark in Europe and marketing approval in Canada a few days ago. Medtronic expects to start marketing the device in the U.S. this fall. Medtronic is one of the world's leading medical technology companies, specializing in implantable and interventional therapy devices and products.

LUCAS 2 is an automated, battery-powered chest compression device that gives consistent, uninterrupted compressions to patients in cardiac arrest. This facilitates the return of spontaneous blood circulation in patients. The battery is Lithium Ion that can operate up to 45 minutes. Furthermore, the device has Smart Restart functionality that allows the battery to be replaced even in operation. This enables lower downtime and saves time for medical personnel. The device also offers new features like alerts and pauses to aid ventilation during compressions.

The new device adds to Medtronic's ever-increasing portfolio. This will help the company to improve its topline and move ahead of its nearest competitors, St. Jude Medical Inc. (STJ - Analyst Report) and Boston Scientific Corp. (BSX - Analyst Report). The company recently reported its fiscal 2009 results with revenue of approximately $14.6 billion, an increase of roughly 8% over last year. As such, our recent report has a 'Buy' recommendation on Medtronic.